AP Labs Delivers Production Systems for Aircell's Inflight Broadband System

March 3, 2008

"There's a tremendous amount of intrigue and appeal for travelers to be able to utilize the Internet when traveling 30,000 feet above the United States at 500 miles per hour," said Dan Garton, American's Executive Vice President - Marketing. "Connectivity is important to our business customers and those who want to use their PDAs and laptops for real-time, full-service, inflight, broadband Internet, e-mail and VPN. With this test of Aircell's technology, American Airlines is demonstrating our commitment to enhancing the travel experience for our customers and meeting their evolving needs when it comes to connectivity and communications.

Prior to customer use, the first aircraft featuring Aircell's broadband Internet service will begin flying for rigorous systems and beta testing pending certifications from the Federal Aviation Administration (FAA).

Aircell's exclusive air-to-ground broadband system will provide customers with an Internet connection, VPN (virtual private network) access, and e-mail capabilities through all Wi-Fi-enabled laptops, PDAs and portable gaming devices. Customers will experience speeds similar to wireless, mobile, broadband services on the ground. The Aircell system is designed to provide full data service - cell phone and Voice Over IP (Internet Protocol) services will not be available.

"American Airlines is an industry leader and innovator in customer services," said Jack Blumenstein, CEO & President, Aircell, LLC. "Aircell is delighted to partner with American to provide flyers with a full, inflight, Internet connectivity experience."

Aircell's broadband service will also provide:

Aircell will offer the connectivity solution to American Airlines customers in all classes of service on the B767-200 aircraft for a fee. Pending successful connectivity trials on B767 aircraft, American could extend Aircell's inflight broadband service to the remainder of the domestic fleet.

Aircell's air-to-ground inflight Internet system for commercial aircraft uses three lightweight antennae installed on the outside of the aircraft. One antenna, the PCS/GPS antenna, is mounted on the top of the aircraft, and the other two antennas are mounted to the bottom of the aircraft. Customers access the broadband signal using their own Wi-Fi enabled devices, which communicate directly with wireless access points that are distributed evenly throughout the aircraft cabin ceiling. The signal will be transmitted through the 3mhz signal from air to ground using 92 cellular towers throughout the continental United States.

The installation work of Aircell's equipment will be performed at the American Airlines maintenance base in Kansas City and will be performed by American's mechanics, represented by the Transport Workers Union. American, a founding member of the onewold® Alliance, conducts nearly 90 percent of its own maintenance work in-house, and provides maintenance to other aviation and aerospace companies as well.

SAN DIEGO, Calif. - AP Labs, Inc. an industry leader in the design and manufacture of airborne computer systems, announced today that it has completed the manufacture, shipment and installation of essential components and enclosures for Aircell’s FAA- authorized inflight broadband equipment. Aircell, the leader in global airborne telecommunications for the commercial and business aviation markets, has developed a next generation broadband solution that will provide inflight Internet access to commercial airline passengers on flights across the continental United States. AP Labs is delivering Aircell Air-to-Ground Communications Units (AACU), a critical sub-system of Aircell’s overall solution.

The Aircell AACU provides both the Air-to-Ground (ATG) wireless link for inflight broadband access and an independent terrestrial modem to be used while the aircraft is on the ground. In addition, the AACU incorporates a GPS receiver, GigE switch and an embedded microcontroller board for housekeeping and system management functions. The AACU leverages AP Labs’ systems integration, software development and packaging expertise.

Aircell LLC is the leader in global airborne telecommunications for the Commercial and Business Aviation markets. The winner of the FCC’s exclusive broadband frequency license in 2006, Aircell is pioneering a revolutionary new wireless broadband system for North America. Aircell Broadband System will include robust Wi-Fi hotspots that enable airline passengers to surf the Internet, use e-mail and log on to their corporate VPNs using their personal Wi-Fi equipped devices. The system will also offer airline operational-communications capabilities and provide a path to a wealth of future cabin services. Set for introduction in 2008, the new broadband service will also be available to business aircraft operators, offering a similar set of features. Aircell (www.Aircell.com) has facilities in Louisville, Colorado, and Itasca, Illinois.